Concessionaria Rodovias do Tiete has pushed back the pricing of its BRL650m ($320m) debenture sale until at least next week, according to investors following the process. The toll road operator’s inflation-linked 2024 bond is secured by the pledge of Tiete’s equity, future receivables of its toll revenues and indemnification rights over concession assets. It is looking to pay a fixed rate of up to 8.75%. The bond has been touted as the first to take advantage of a program offering tax incentives to buyers of infrastructure-related bonds, and is said to be marketed to both domestic and international accounts. However, investors say there is some uncertainty as to whether the bonds will fully qualify for the tax benefits, as the proceeds are use used to pay off BRL480m in short-term debt in addition to funding road capex. Barclays is managing the sale, in the bank’s first Brazilian domestic market bond, rated Aa3 on a national scale.
Category: Bonds
Santiago Metro Issues UF Bond
Chile’s Empresa de Transporte de Pasajeros Metro has issued UF1.5m ($67m) in domestic bonds, it says. The Santiago subway operator priced the 2033 bullet at 99.54, with a 3.85% coupon, to yield 3.88% or government bonds plus 121bp. It will use the proceeds to refinance existing bank debt. Santander managed the sale, rated AA+/AA on a national scale. Metro previously issued in October 2011, placing UF5.2m in 3.75% 2022 bonds at a 4.00% yield, or government bonds plus 129bp.
Brazilian to Test DCM
Brasil Foods is preparing to meet bond investors next week, becoming the region’s first credit to engage the buyside since the latest bout of Euro-driven market volatility. The meetings are initially on a non-deal basis, though the issuer is said to be revisiting a process started last year through which it was seeking funds. Expectations for new issuance have been mild since Mexico’s Banca Mifel issued May 10, as the potential borrowers await a more definitive indication of Greece’s remaining in the Eurozone. “The market is slightly more expensive, but the window is not closed. There are high-grade defensive credits getting deals done in other parts of the world,” says a New York-based DCM banker away from the deal. Rates are still low, and debt funds are still getting inflows, he adds. “There are 3 weeks until the Greek election and the markets knowing if a new government will be pro-EU. This outcome would cause liquidity to return, but we would need another 2-3 weeks until new issuance can return,” Diego Torres, corporate debt analyst at Santiago brokerage Munita, Cruzat y Claro, tells LatinFinance. Brasil Foods plans to visit London on Monday and Boston and New York on Tuesday, plus a call with US west coast investors. A recent upgrade gave Brasil Foods 3 of 3 investment-grade ratings, and the company has altered its structure through moves last year, including a regulator-mandated asset swap with Marfrig and a dairy acquisition. The company is updating investors following these changes, though, like many high-quality credits not in urgent need of funds, it is remaining ready in case a window opens. The protein exporter was heard last year looking for $750m at perhaps 10 years. Banco do Brasil, HSBC, Itau and Santander are managing the roadshow. Brasil Foods closed a $500m dollar and euro-denominated loan facility last month. Its last international bond issuance was in 2010, raising $750m at 10 years through Itau, JPMorgan and Santander.
Inbursa Raises Domestic Funds
Banco Inbursa has sold MXP4.6bn ($329m) in Mexico’s domestic bond market, according to a banker on the deal. The 3-year floating-rate note pays the TIIE+25bp. The price comes roughly in line with the market’s expectations, as it had been seen getting a similar level to Feburary’s MXP3.5bn 2015 bond, paying TIIE+20bp. The Carlos Slim-owned bank had been registered for up to MXP5bn, but had been expecting a MXP4bn sale. Proceeds will be used to fund bank operations. Actinver, BAML, Banamex and Inbursa managed the transaction, rated AAA on a national scale.
Scotia Chile Issues Bonds
Scotiabank has issued UF2m ($88m) in the Chilean local bond market, according to a source familiar with the sale. The 2022 bullet priced at 98.62, with a 3.5% coupon, to yield 3.7%, or 130bp over government bonds. Demand reached UF2.5m. Scotia managed the sale itself, rated AAA on a national scale.
US, Colombia Look to Improve ECA Relationship
The US Ex-Im Bank and Colombian state-owned development bank Bancoldex have signed an MOU to work together to facilitate trade between the 2 countries, US Ex-Im says. The pair will look to boost business in sectors including infrastructure, environmental projects, medical equipment and transportation, by expanding use of Ex-Im Bank financing by Colombian buyers of US goods and services.
Kuo Preps Local Debt
Mexico’s Grupo Kuo is preparing to issue up to MXP700m ($51m) in the domestic bond market June 20. The holding company is looking at a 7-year tenor paying a spread to the TIIE benchmark. Ixe is managing the program, which has an A rating by Fitch. In 2010, Kuo priced a MXP700m 2015 bond at TIIE+260bp, through Ixe. Grupo Kuo has holdings in consumer goods, as well as the chemical and automotive industries.
Mall Plaza Joins Chile Bond Pipeline
Chile’s Mall Plaza could tap the domestic bond market in the first half of June for UF3m-UF4m ($134m-$179m), according to a source familiar with the process. The mall operator unit of Falabella would likely look at a 2-tranche deal, a shorter tranche at 5 or 6 years and a longer tranche of 20-22 years, but more specific conditions have not yet been established. Proceeds are likely to be used for refinancing and investment. Mall Plaza is rated AA on a local scale. Bookrunners are heard to be IMTrust and Santander.
Santiago Metro Nears Issue
Empresa de Transporte de Pasajeros Metro has started its bookbuilding process for a new domestic bond, and is expected to issue Thursday, says a person familiar with the sale. The Santiago subway operator is selling up to UF1.5m ($67m) in 2033 bonds with a coupon of 3.85%. The funds are to be used to refinance debt. Santander is managing the sale, rated AA/AA+ on a national scale. Metro last issued in October 2011, placing UF5.2m in 21-year bonds at a 3.75% coupon to yield 4.00%, or government bonds plus 129bp.
Scotia to Sell UF Bond
Scotiabank is expected to issue UF2m ($89m) in the Chilean local bond market today, it says. The bank plans a 2022 bullet with a coupon of 3.5%. Scotia is managing the sale itself, rated AAA on a national scale.